Eco 561 EBSTAT Research Paper

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EBSTAT Business Proposal ECO/561 August 11, 2014 Amanda Deerfield EBSTAT Business Proposal Ebola is a highly contagious and deadly virus which is believed to have originated in Africa, and although the exact origin of the virus is not known, researchers suspect contact with an animal host through blood or bodily fluids. Humans once infected, are able to transmit to the virus to others through bodily fluid contact (WHO, 2014). Named after an outbreak in 1976 near the Ebola river, WHO believes the deadly virus can have an incubation period of 2-21 days before the flulike symptoms emerge. There have been over 20 documented outbreaks since 1976 with fatality rates between 25-100% (WHO, 2014). Per the WHO (2014), the latest Ebola outbreak with began in January 2014 has killed over 1,000 Liberians and healthcare workers to date. ABC proposes to launch a promising solution in the form of a new vaccine EBSTAT which has just passed the first phase of clinical trials in the United States (US). Market Structure and Elasticity ABC industries is one of only four companies worldwide who are working on a new medication to treat and prevent the deadly disease. The EBSTAT market structure is limited and is considered an oligopoly, due to the extremely high costs…show more content…
For instance, there the outbreak of Ebola has currently required the need to obtain the tested medications created to try and cure Ebola. As a result to the outbreak, the required cure for such medication is highly demanded. Therefore, the elasticity of the product is increased. The increase of demand has created an increase in price. Once the outbreak is no longer a threat or concern, the demand for the product will no longer be needed, which then decreases the prices on the product or

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